UK Prime Minister Sir Keir Starmer has said AI should replace the work of civil service officials when it can operate to a similar standard.
The government’s new digital first policy aims to leverage artificial intelligence to reshape the state and bring billions of pounds in savings, the PM said in a speech.
Science and Technology Secretary Peter Kyle confirmed that it is “almost certain” that the UK civil service, one of the largest employers in the country, will see its headcount reduced as government departments adopt AI tools.
According to a report from Kyle’s department, there is up to £45bn worth of productivity and efficiency savings to be made within government if it embraced AI.
“More than half or about half of all transactions are carried out by government or analogue,” Kyle said in an interview with Sky News.
He was speaking ahead of Starmer’s speech, in which the Prime Minister announced major reforms to the way the state works to “deliver for working people” and to ensure security in the new global “era of instability”.
The prime minister set out proposals to recruit 2,000 tech apprentices to “turbo charge” the take-up of AI in Whitehall with the aim of modernising departments and making sure the government has the skills to overhaul public services using technology.
Specialist tech teams will be sent into public sector departments to “drive improvements and efficiency in public services”.
Starmer said: “No person’s substantive time should be spent on a task where digital or AI can do it better, quicker and to the same high quality and standard.”
It comes as Elon Musk has begun huge cuts across the US government through his Department of Government Efficiency (DOGE) following Donald Trump’s election to a second term in January.
What does the tech industry think of Starmer’s announcement?
The announcement has sent shockwaves through Whitehall, with Unions already warning Starmer that he must protect jobs instead of scapegoating civil servants.
Reacting to Starmer’s speech, Prospect chief Mike Clancy said Starmer is “right that the civil service is full of talented people who want to serve their country, and that reform is needed to make the best use of their skills”.
“An essential part of this reform needs to be ensuring that the pay framework enables the civil service to recruit and retain ‘the brightest and the best’ in areas like science and digital, and it is good to see that the government accepts this problem,” he added.
“But the government must recognise that there is a fine line between cutting back bureaucracy and undermining the essential functions of the state. Civil servants in agencies such as HSE and the Environment Agency are at the frontline of delivering on the government’s missions – writing them off as ‘blockers’ is a profound mistake. Prospect will be making the case that good regulation is the foundation of economic success, not a barrier to it.”
Starmer said he was not questioning the commitment of civil servants, but instead saying the system needs reform.
“It is about the system we have got in place and that system was created by politicians. The buck stops with us,” he said.
But figures within the tech industry warned the reforms risked failure if the right steps aren’t taken to protect staff.
Neal Riley, co-founder and GM of Salable, part of digital transformation firm The Adaptavist Group, said: “Starmer is right to recognise the importance of digital transformation and AI in driving efficiency and productivity. However, without proper implementation, there is a high risk that the initiative will fail on its objectives, and the government will fall short on its ambition to ‘mainline AI into the veins of the UK’.
“To support the strategy’s success, AI must be applied where it can solve real problems and create new value for both employees and the civil service overall. At a time when fears about job cuts are rampant, it is also critical that the government applies an empathetic approach to change management and skill development, vs focusing exclusively on cuts and savings.”
“If the civil service can successfully embrace AI, teams should be able to enhance their work and apply their expertise in new, innovative ways.”
However, many in the industry welcomed the Labour PM’s plans to embrace AI and invest in tech to reshape the state.
Damian Stirrett, group vice president & general manager UK & Ireland at ServiceNow, said: “The Prime Minister’s announcement to “reshape” the state offers a huge opportunity to reinforce the UK’s ambitions to be an AI leader across the public sector. The private sector is already proving what’s possible—AI-driven automation is cutting error rates by up to 50% and reducing casework time by over a third.
“AI, and Agentic AI in particular, will be central to a successful and sustainable transformation, and it is promising to hear Keir Starmer’s plans for greater use of AI in the civil service. Agentic AI is the new frontier, delivering predictability and efficiency across organisations. Investing and implementing Agentic AI will enable the civil service, and the public state as a whole, to meet demands faster, smarter, and at scale. Today’s pledge is one of many important steps the UK is taking to become a true AI leader.”
His comments were echoed by Lenovo Infrastructure Solutions Group UK&I country GM Ian Jeffs, who revealed that UK investment in AI has increased by 84% since 2024, highlighting the wider shift to the technology.
“While investment and confidence in AI continue to grow, critical challenges remain around training staff, poor data quality and scaling initiatives. Careful implementation is required by governmental departments to ensure the right frameworks are in place to enable innovation and productivity.
“For it to be considered a success, the UK Government must be proactive and implement impactful AI solutions that showcase ROI and turn words into actionable outcomes.”
NHS England to be scrapped
Starmer also announced major plans to overhaul the National Health Service by scrapping NHS England, an independent body that has run the British health services since 2012.
The move, according to Starmer, will “cut bureaucracy” and bring management of the NHS back into “democratic control” with politicians handed oversight of the organization.
NHS England is a separate entity from the NHS and employs around 13,500 staff, including its digital divisions, which are headquartered in Leeds.
“I don’t see why decisions about £200bn of taxpayer money on something as fundamental to our security as the NHS should be taken by an arm’s length body, NHS England,” he said in his speech, which took place in nearby Hull.
As Starmer’s announcement was due to be made, Sonia Patel, CTO of NHS England, was due to speak at today’s Tech Show London, at the Excel conference centre. However, Patel’s panel was pulled at the last moment.
